International. According to the recently released "5G Entertainment Economics Report," requested by Intel and conducted by Ovum, it is anticipated that over the next decade (2019-2028), media and entertainment companies will compete for a share of the opportunity to earn cumulative wireless media revenue of nearly $3 trillion. The experiences that will make 5G networks possible will account for nearly half of this revenue opportunity (nearly US$1.3 trillion).
"5G technology will inevitably shake up the media and entertainment landscape. It will be an important competitive asset if companies adapt. Otherwise, they risk failure and even extinction. This wave of transformation to 5G won't be competition from any particular sector, and now is certainly the time for all business strategists to ask themselves: is your company ready for 5G technology?" said Jonathan Wood, general manager of Next Generation 5G Business Developments and Partnerships and Standards at Intel.
Why 2025 is the turning point of 5G technology: The report says that by 2025, 57% of revenue from wireless media will be generated using the capabilities of 5G networks and devices running on 5G. The low latency of these networks means that no video will stop or stop – streaming and large downloads will take place in the blink of an eye.
The report points to the following revenue gains as 5G networks overtake 3G and 4G, offering new capabilities:
- 2022: almost 20% of total revenue – US$47 billion from US$253 billion
- 2025: more than 55% of total revenue – US$183 billion from US$321 billion
- 2028: almost 80% of total revenue – US$335 billion from US$420 billion
How media demand drives the evolution of networks: The "5G Entertainment Economics Report" predicts that 5G technology will accelerate content consumption, including mobile media, mobile advertising, home broadband and television, and improve experiences across a wide range of new immersive and interactive technologies – unleashing the full potential of augmented reality (AR), virtual reality (VR) and news media.
Average monthly traffic per 5G subscriber will grow from 11.7GB in 2019 to 84.4GB per month in 2028, when video will account for 90% of all 5G traffic.
The evolved 3G and 4G networks would offer a degraded experience, because the capacity will be insufficient to handle the increase in video viewing time, the evolution of content to higher resolutions, greater number of integrated media and immersive experiences.
The forecast to provide US$140 billion in cumulative revenue (2021-2028), expanded AR and VR experiences can also make possible a whole new channel for content producers to reach consumers.
Immersive media applications and new applications and capabilities – which do not currently exist – will reach unprecedented scale by 2028; they are projected to generate more than US$67 billion annually, or the value of the entire global mobile media market – video, music and gaming – in 2017.
How companies are optimizing for 5G technology: Beyond media and entertainment, all sectors have had to adapt to disruptive changes in the business environment, consumer habits and public expectations. Companies are trying to imagine how 5G technology will transform and disrupt their industry, society and even global competition, and are beginning to formulate their strategy to embrace the capabilities of 5G technology. Without the promise of what 5G can offer, the growth of many industries may continue to stall and even slow.
When 3G wireless networks were launched, no one could have predicted the way the mobile world would look today. 4G technology in the United States spawned entirely new industries. Companies like Airbnb*, Uber*, Netflix* and Spotify* wouldn't have been possible without 4G.
"The big unknown is: what won't be affected or transformed by 5G technology? The next-generation wireless network will fuel diverse digital innovation: everything from the computerization of physical objects to artificial intelligence, leading to an exciting new world that business leaders, and certainly countries, need to prepare for," said Ed Barton, chief analyst, Entertainment Practice, Ovum.
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